Resources List
UNDER SEIS Tax Relief
Claiming SEIS tax relief
Having identified SEIS-eligible companies, confirmed their SEIS Advance Assurance, negotiated terms, and made your investment, what comes next? How do you secure the promised tax relief?
1) Completion of compliance statement (SEIS1 form)
The investee company must fill out a compliance statement. There are specific rules regarding when this can occur. HMRC accepts compliance statements only after the company has engaged in qualifying business activities for at least four months or has spent a minimum of 70% of the funds raised through SEIS.
2) HMRC issues confirmation documents (SEIS2 and SEIS3)
Typically, HMRC reviews the compliance application within 15 to 45 working days.
To approve the SEIS-qualifying status, HMRC sends the investee company two key documents:
- SEIS2: A letter containing the Unique Investment Reference (UIR) number for the share issue. The company must provide you with this UIR to facilitate your claim for tax relief.
- SEIS3: A blank SEIS compliance certificate. The company completes this for each investor (including the UIR) and sends it to you. The SEIS3 serves as proof that your investment qualifies for SEIS tax relief.
Claiming tax relief via your annual Self Assessment tax return
As an investor, you can claim your SEIS tax relief by completing your annual Self Assessment tax return. On the Additional Information page, under ‘Other tax reliefs’, input the total amount you’ve invested in SEIS-eligible companies (as well as any other Venture Capital Scheme relief you’re seeking).
Keep in mind that you have five years to claim SEIS tax relief, and there is flexibility to carry back relief to the previous tax year.